Due to Indonesia’s unique position as the world's largest island nation. Its national utility, PLN, currently operates more than 5,200 power plants. The majority is running on diesel fuel, with a total installed capacity of 25,000 MW. This results in high electricity generation costs, in particular from small diesel-powered generators on the islands outside the Java-Bali grid. In remote areas the costs of electricity generation from diesel gen-sets reaches 0.25 €/kWh. Future trends of rising oil price will result in increasing electricity generation costs. Thus renewable energies and especially photovoltaics are already costs-competitive at today’s market prices combined with Indonesia’s high solar irradiation.

LCORE-INDO aims at replacing of diesel generators or at reducing generator operation by implementing grid-connected solar and other renewable energy power plants.

In this context, LCORE-INDO team selects pilot projects according to prevailing generation costs. The substitution of most expensive generation is priority. Additionally project activities also include the grid connection of already existing micro-hydro plants (MHP). Those are located close to the local grid. Thus connection requires only comparable low investment costs and short payback periods.

This approach will be tested in cooperation with various stakeholders such as PLN, NREEC/MoEMR, local authorities and the private sector by developing models, and guidelines and action plans.